USA: U.S FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN DECLARES THAT US PRODUCTIVITY WILL OUTSTRIP EUROPE
Record ID:
648072
USA: U.S FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN DECLARES THAT US PRODUCTIVITY WILL OUTSTRIP EUROPE
- Title: USA: U.S FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN DECLARES THAT US PRODUCTIVITY WILL OUTSTRIP EUROPE
- Date: 30th November 2001
- Summary: (W3)WASHINGTON, DC, UNITED STATES (NOVEMBER 30, 2001) (REUTERS -- ACCESS ALL) 1. WIDESHOT OF FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN ENTERING THE CONFERENCE ROOM 0.22 2. SCU SOUNDBITE (English) GREENSPAN SAYING "Clearly the Euro readily meets all the key qualifications for a major international currency. Indeed, there can be little doubt that the Euro is a sound currency," 0.35 3. WIDESHOT OF CONFERENCE ROOM 0.40 4. SCU SOUNDBITE (English) GREENSPAN SAYING " Productivity growth in the United States is likely to be greater than that in continental Europe in the years ahead. The steady flow of capital from Europe to the United States in recent years is, presumably, the consequences of Europeans finding many investments in the United States persistently more attractive than those at home,". 1.05 5. WIDESHOT OF PANEL MEMBERS CLAPPING 1.15 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 15th December 2001 12:00
- Keywords:
- Location: WASHINGTON D.C., UNITED STATES
- City:
- Country: USA
- Reuters ID: LVAA82HGMP4KHVOJMIK8643A4LE3
- Story Text: United States Federal Reserve Chairman Alan Greenspan
has declared a belief that U.S. productivity, or output per
worker, will continue to outstrip Europe's accounts for more
robust demand for dollars over euros.
While addressing the Euro 50 Group, a Brussels-based
organization that promotes discussion of European economic
policies on Friday (November 30) Federal Reserve Chairman Alan
Greenspan said the European common currency was hurt by
continued wrangling over regulatory and legal differences
across borders that has hampered equity trading and securities
lending.
But he suggested the key factor was a stronger expectation
in financial markets for output gains in the United States
than elsewhere.
Greenspan said U.S. firms are more willing to adopt new,
productivity-enhancing technology in part because they face
fewer restrictions on the hiring and firing of workers than
their European counterparts.
Answering questions later, Greenspan expressed some
surprise that productivity has advanced even in the face of an
economic slowdown that turned into an outright contraction in
national output during the third quarter, when gross domestic
product shrank at at a 1.1 percent annual rate.
He said it was possible the productivity -- regarded as
key to generating continued increases in living standards --
will advance again.
The Euro has existed in financial markets for almost three
years, but will go into physical circulation next year among
the 12 European nations that have entered into monetary union.
In its brief life span, the Euro has been consistently
weaker than the U.S. dollar in foreign exchange markets,
something Greenspan said was due to several factors.
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